Title : Darwin floodwater basin hoped to reduce insurance premiums
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Darwin floodwater basin hoped to reduce insurance premiums
There is nothing like a massive hole in the ground to sow division among residents — particularly one that cost $10 million.
Key points:
- Work is complete on a $10 million stormwater detention basin designed to stop flooding around Rapid Creek near Darwin's airport
- The basin is meant to catch run-off from the suburbs of Anula, Moil and Marrara and drain it over 24 hours
- The Territory Insurance Office says it is assessing whether the basin will affect customers' premiums
But that is what those in the Darwin suburb of Rapid Creek have been granted, in the hope it will spare it a repeat of the havoc wrought by Cyclone Carlos in 2011.
The Northern Territory Government's newly completed storm water detention basin is designed to catch flows from the suburbs of Anula, Moil and Marrara and drain it more slowly over 24 hours.
Some are hopeful it will help ease some insurance-related headaches, but Andrew Arthur is sceptical.
The community convener of Save Rapid Creek — a group which aims to halt development to preserve the landscape — said recent land clearing and hard surface development upstream would increase the amount of water headed towards his suburb during a cyclone.
"Our fear is this project will fail when needed most," Mr Arthur said.
"Any relief this big hole will provide has been lost by recent Marrara and Boulter Road developments."
The timing and cost of the basin project blew out by $2.5 million dollars, because specialists were required to remove asbestos and PFAS chemicals found on the site.
The PFAS traces were "very low concentrations" according to Graeme Finch, the senior director of land development from the NT Department of Infrastructure, but needed careful attention.
"Well below health limits, environmental limits, but above disposal limits, which was our issue," he said.
"We had to do a lot of geo-technical investigations."
Hopes for insurance relief
When the Giles CLP government sold off the Territory Insurance Office (TIO) in 2014, it promised to spend some of the proceeds on flood mitigation.
The previous government said that would lower insurance premiums for everyone.
But many residents said their premiums kept rising.
TIO said its risk-based pricing methodology reflected the accurate costs of covering the different risks faced by Territorians in different areas.
"Previously, all customers shared the cost of high-risk conditions," TIO chief executive officer Daryl Madden said.
"The risk-based pricing methodology means properties in higher-risk areas will be charged more for their insurance, while those in lower-risk areas will be charged less."
Rapid Creek resident Morgan Furer said premiums were up all over his neighbourhood.
"We've gone from $1,800 to over $4,000," he said.
"Over down the road it's even worse."
Now following the completion of the Rapid Creek basin, residents are still waiting for funds to flood proof their homes, and hope the Government can convince insurance companies to lower premiums.
"We need that support to go back and revisit insurance per se and see what they're prepared to do," Mr Furer said.
"It's a commercial decision, I understand that from an insurance point of view, but hopefully they will look at it."
Mr Madden said the insurance company was liaising with the Northern Territory Government and currently assessing the impact of the flood mitigation work.
He said TIO would look at current home product pricing for the impacted Rapid Creek area and "communicate with our customers directly in due course".
'A good wet season' will be the test
Cyclones are front of mind for many Territorians, particularly those who survived Cyclone Tracy in 1974.
Mr Furer was in Rapid Creek when Cyclone Carlos hit eight years ago, and said it was a tough time for the neighbourhood.
During the event many were evacuated, schools and the airport were closed and emergency services were inundated with calls.
He said he was reserving judgement on the new basin infrastructure until next year.
"We need a good wet season to see how it works," he said.
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